new methanol uses in fuels · 2016-10-04 · • the methanol institute has committed to assisting...
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New Methanol Uses in Fuels
Gregory Dolan, CEO
Methanol Institute
IHS World Methanol Conference
Budapest – October 1, 2016
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WHO WE ARE 01
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Global Methanol Representation
• The Methanol Institute (MI) was first formed in 1989 to represent US methanol producers in
Washington.
• 27 years later, MI is truly a global trade association supporting the expansion of the methanol
industry in every corner of the world from offices in:
S i n g a p o r e | Wa s h i n g t o n | B r u s s e l s | B e i j i n g
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TRANSITION TO ENERGY RESOURCE 02
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Alternative Fuel Drivers
Scale: The feedstock base needs to be large enough to support global transportation market.
Sustainability: There needs to be a viable pathway to low- or no-carbon transport, while reducing smog.
Subsidy: Can’t rely on government support forever, so someone needs to make money.
Consumer: Demands seamless transition and ease of use.
Methanol: Checks all the drivers!
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Methanol is Simplest of Alcohols
• Simple molecule rich in
hydrogen, with only no carbon-
to-carbon bonds.
• Clear and colorless liquid at
room temperature and ambient
pressure.
• Also known as “wood alcohol,”
methanol can be produced
from a wide range of
feedstocks.
Formula: CH3OH
Density: 0,792 g.cm-3
Molar mass: 32,04 g mol-1
Appearance: colourless liquid
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Feedstock:
Abundant/Sustainable
Market:
Large/Diverse
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Methanol: Essential Chemical Building Block
Source: Methanex
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Methanol is a Versatile Fuel Source
FUELS
• Neat fuel
• Low blends
• High blends
• GEM
• MTBE
• Biodiesel
• DME & OME
• MTG
TECHNOLOGIES
• SI & CI engines
• Turbines
• Fuel cells
• Stoves
• Out of the ~70 million metric tons of methanol sold globally in 2015, energy and
fuel uses represent 40% of total demand
• From 2009-2015, direct methanol fuel blending has increased at an annual rate
of nearly 23%
SEGMENTS
• Road & non-road
transportation
• Power & heat
generation, and
• Marine
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Source: IHS Chemical, November 2015
Oil Displacement Drives Demand Growth
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Denmark –
methanol fuel cells
for vehicles
Sweden – methanol
marine fuel
Israel – Power generation & M15
Standard
Australia – GEM fuel
Africa – cooking
stoves
China– M15 to
M100, Industrial
Boilers UK – EN228
low blend USA – methanol
motorsport fuel
Methanol Fuel Examples Around the World
Iceland – M100
Trials
Egypt – M15 Trials
New Zealand –
Introducing M3 India – Methanol
Economy Roadmap
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ROAD TRANSPORT 03
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Methanol - Practical Liquid Fuel Alternative
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Various Gasoline/Diesel Blend Options
M3 – M15 • EU allows M3
(EN228)
Blended a.o. in UK
and NL
• China uses M15
Estimated 10 million
metric tons
~75% of cars built by
international
automakers
• Israel standard for
M15 gasoline blend
A20 – A30 • Automakers call for
higher octane to
facilitate greater
engine efficiency
(higher compression,
turbocharging,
downsizing)
• Methanol and ethanol
alcohol fuels together
at mid-level blends
provide needed
octane
M51-100 • ASTM D5797
standard revision
• M100 dedicated
vehicles (e.g. Geely)
• Use of SI
technologies in light
duty vehicles
• Both SI and CI for
heavy duty vehicles
• Few changes needed
to existing vehicle
technologies at low
cost
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10 Million Tons Fuel Blending
China Pol icy Shif t ing from Provinces to Central Government
• China is progressing on dedicated M100 methanol fueled vehicles both in R&D and through an extensive pilot program under Ministry of Industry and Information Technology.
• Currently, Chinese automotive OEMs like Geely, FAW and Brilliance are working on M100 passenger cars.
• For commercial vehicles, work is split into two technologies directions: M100 heavy-duty vehicles/engines led by FAW Jingye, and Diesel Methanol Compound Combustion (DMCC) heavy-duty vehicles/engines led by Tianjin University.
• Existing car retrofitting from gasoline to M100 is also gaining market traction and is being promoted by some local governments.
• In China, over 156,000 cars have been retrofitted, the cost is no more than 1000 RMB/unit or about USD$150.
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• Israel fundamentals:
• Large gas finds in Israel.
• Strategic need to reduce oil dependence.
• Prime Minister Netanyahu established Fuel
Choices Initiative.
• Standards Institution of Israel has approved a
national standard for M15 fuel blends, first such
standard outside China.
• Fiat will introduce M15 car in 2016, and M85 car
in 2 years.
Israel Methanol Fuels Demonstrations
“The Israeli Standard for M15
is an important step forward
in the reduction of the use of
oil products and in the
utilization of the natural gas
reservoirs that Israel was
blessed with.”
Helen Atarot, Standardization
Division Director, Standards
Institute of Israel
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OK Denmark Recently Opened 1st Methanol Fuel Pump in the EU
• In Denmark the Green Methanol Infrastructure
consortium (Serenergy, OK and Hamag)
recently opened the 1st methanol fuel pump
in Europe.
• Response to EU’s Renewable Energy
Directive and Fuel Quality Directive.
• Cars use Serenergy RMFC technology as
range extender and CRI methanol as fuel.
• The consortium reports a battery powered
vehicles to drive 800 kilometers on one tank.
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India: Roadmap to Methanol Economy
• On 11 September 2015, NITI Aayog held brainstorming session on possible roadmap for Methanol Economy for India’s long-term energy security.
• Formed three Expert Groups:
• Production of Methanol and DME
• Utilization of Methanol and DME
• Research and Development
• The Methanol Institute has committed to assisting the Expert Groups as they look to opportunities to increase methanol production from coal and biomass, and utilize methanol and DME as transportation fuels.
• MI jointly organized Methanol Economy International Seminar held in Delhi on 6-7 September 2016.
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MARINE FUELS 04
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• Over 90,000 commercial vessels on world’s
oceans, consuming 370 million tons of
bunker fuel (Heavy Fuel Oil and Middle
Distillates).
• One container ship: SOx = 50 million
cars
• 15 largest ships: SOx emissions = 760
million cars in the world
Marine Fuel in Transition
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Environmental & Health Hazards
• NOAA: Globally
shipping accounts
for 60,000 deaths
and US$330
billion in health
costs.
• NRDC: Shipping
at intersection of
high population,
choking pollution,
and rapid growth. Source: Natural Resources Defense Council
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• The International Maritime Organization has adopted regulations for SOx and NOx that are transforming the shipping industry.
• While SOx reductions may be met with low sulfur fuels, the combination of SOx and NOx reductions driving shipboard solutions.
Emissions regulations driving market
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Different Options Available to Ship Owners
HFO
+ scrubbers MGO LNG Methanol
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Methanol is Also a Low Flash Point Fuel
Properties HFO MGO LNG Methanol
Physical state liquid liquid cryogenic liquid liquid
Boiling temperature at 1 bar [oC] - 175 – 650 -/- 161 65
Density at 15oC [kg/m3] (LNG shown at -/-160oC)
989 Max. 900 448 796
Dynamic viscosity at 40oC [cSt] - 3,5 - 0,6 (at 25oC)
Lower heating value [MJ/kg] 40 43 50 (at -160oC, 1 bar)
20
Lubricity WSD [μm] - 280-400 - 1100
Vapour density air = 1 - >5 0,55 1,1
Flash point (TCC) [oC] >60 >60 -/-175 12
Auto ignition temperature [oC] - 250-500 540 464
Flammability limits [by % vol. of mixture] - 0,3 – 10 5 – 15 6 - 36
Source:
EMSA
Study on the use of ethyl and methyl alcohol as alternative fuels in shipping
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Examples of Vessels Running on Methanol
2-stroke 4-stroke high speed projects
7 chemical tankers 1 RoPax Ferry 1 pilot boat cruise ship, ferry, a.o.
MAN Wärtsila Volvo, Scania, FiTech various
MOL, WL, Marinvest Stena Lines Swedish Maritime
Administration, MI
Methaship,
LeanShips, a.o.
operational
new build retrofit retrofit new build
operational testing design
DNV GL Lloyds Register various
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Methanol Fuel Cells Improve Electrical Efficiency
As part of the Pa-X-ell project Meyer Werft
installed a Serenergy high temperature methanol
fuel cell system demonstrator on board the
Mariella.
The system electricity at higher efficiencies
than a typical diesel system. [source: Serenergy]
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Dual Fuel Engine Technology Ensures Flexibility
Engines converted
for methanol
combustion
Double walled fuel
pipes
Pump room
Ballast tank converted
to methanol fuel tank
Source: Stena Line
• Pilot fuel assisted diesel combustion concept.
• Methanol is ignited by a small amount of diesel pilot fuel
• Crew and passenger safety top priority.
• Safety measures include a.o. double walled pipes, ventilation, high pressure oil valves, nitrogen blanketing.
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Wärtsilä Methanol - Diesel on Engine Piping
Source: Toni Stojcevski / Wärtsilä
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Methanol Enables Significant Emission Reductions
SOx NOx PM 0%
-/-60%
-/-70%
-/-90%
-/-80%
-/-50%
-/-40%
-/-30%
-/-20%
-/-10%
Source: Stena Line
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Methanol Storage Capacity Estimates (thousand tons)
Available in Many Ports Around the World
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Methanol is Easy To Handle
• Liquid at atmospheric pressure.
• Available in many ports around the world and
along rivers.
• Low infrastucture cost.
• Flexible, modular system.
• Environmentally friendly as it is biodegradable.
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Methanol is Cost Competitive on an Energy Equivalent Basis
Over a five-year time frame methanol has been mostly cost competitive
despite decreased oil prices methanol remains competitive in many key
regions, including China.
Source: Platts and IHS Chemical
Methanol converted to MGO energy equivalent at factor of 2.16
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Methanol... • is plentiful, available globally.
• can be made 100% renewable.
• runs well in existing engine technology and has potential for further optimization.
• complies with increasingly stringent emission reduction regulations.
• requires only minor modifications to current bunkering infrastructure.
• is biodegradable!
• safe handling can rely on long history and experience in shipping and industry.
• cost are relatively modest and drop as experience mounts.
• shows slight regional price variation.
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A Picture Says More…
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EMERGING MARKETS 05
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Methanol in Gas Powered Turbines
In 2011, Israel Electric Corp (IEC) & Dor
performed trial conversion at Caesara power
plant located in valley in Eilat
Previously used diesel-fuelled turbine for
peak power. Permit limited to 300 hours of
operation annually; no pipeline natural gas
access
June 2014 commercial operation of 100%
methanol-fuelled Pratt & Whitney FT4C Twin
Pack 50 MW gas turbine.
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•Low-cost fuel system retrofits to methanol, with this initial project costing $5 million.
•Yields significant NOx, SO2, and particulates emission reduction, without affecting performance.
•Unit now permitted to operate for 2,000 hours per year.
•Methanol consumption is 30 tons per hour.
•This technology (first of its type in the world) can be adopted in many other places (mainly Islands) where due to no natural gas supply, are currently using polluting fuels.
IEC/Dor Findings
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Methanol in Cooking Stove Applications
•Traditional cooking fuels (wood/charcoal, dung, kerosene, paraffin, diesel, coal, LPG) can emit harmful particulates and potential fire hazards.
•Nigeria (kerosene stoves), South Africa (paraffin), China (coal).
•Project Gaia pilot project and studies in Nigeria since 2005.
•Distributed fuel already in canister: no handling of fuel by beneficiaries; results very successful.
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Methanol in Cooking Stove Applications
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Methanol in Cooking Stove Applications
China is Leading the World
•Methanol for cooking applications in China since 1983
•Potential for large amounts of methanol needed for future cooking applications in China.
•Use of alcohol in cooking fuels could reduce annual direct coal burning by 3,172 MW and CO2 emissions decrease of 8.25 billion tons.
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Methanol Boiler Fuel in China
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Main Driving Forces
• Government banning of Coal Fired Boilers in Urban Area
• CAPEX and OPEX
• Supply of Other Alternatives like NG and Biomass
• Partially Explaining the Missing Volume in the Consumption Statistics in China
Fuel Methanol1 Natural Gas2
(Low price)
Natural Gas (High
price) Diesel Coal
Commercial and
Industrial
Electricity3
Unit price of fuel (RMB) 1.8 /kg 2.2/m3 4.5/m3 5.5/kg 0.4/kg 0.9/kWh
Unit price/0.1 Cal (RMB) 3.8 2.6 5.4 5.5 0.8 10
Thermal Efficiency4 90% 90% 90% 90% 55% 96%
Actual Economics
(RMB/0.1 Cal) 3.7 2.7 5.2 5.4 1.45 11
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Methanol Boiler Fuel
Methanol
Boiler in
Tianjin;
15 steam
ton/hour
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Methanol T W O T Y P E S O F M E T H A N O L F U E L C E L L S
Fuel Cells
Methanol
important in fuel
cells as an
environmentally-
friendly hydrogen
carrier fuel
Direct Methanol Fuel
Cells (DMFCs):
• Subcategory of proton
exchange fuel cells
• Liquid MEOH used as
the fuel.
• Easy to transport,
energy-dense/stable
• Low efficiency
• Good for portable
power
• Waste: CO2 & water
vapor
Reformed Methanol Fuel Cells (RMFC) / Indirect Methanol Fuel Cells (IMFCs):
• Methanol reformed to hydrogen gas before being fed into fuel cell.
• Higher efficiency, smaller cell stacks, better operation/storage at low temps.
• Heat mgt/insulation systems required
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Primary Applications for Fuel Cells
Charging/Replacement of batteries
• Forklifts
• Camper vans
Provision of off-grid or grid-support power
• Backup power supply to telecoms towers
• Remote communities
• Desalinization plants
• Off-grid mining
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BONUS 06
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Clinton vs. Trump on Energy Issues
Clinton
• Local/state governments should be allowed to ban fracking
• Wants US to be clean energy superpower “either China, Germany or America. I want it to be us.”
• Campaign staffer met with CARB creating firestorm that she would replace RFS with California’s Low Carbon Fuel Standard
• Supports Paris climate change agreement
• Democratic platform calls for: WWII-like effort on climate change; a price on carbon; and 50% of electricity from clean energy within a decade.
Trump
• April criticized NYS ban on fracking, and in July said local/state governments should be allowed to ban fracking
• Wind power “kills all your birds” and solar power “I love solar power, but the payback is what, 18 years?”
• Opening all onshore/offshore and federal lands to oil/gas/coal development increase GDP by $100 billion year and create 500,000 jobs
• Vows to “cancel” the Paris climate change agreement
• Will “save the coal industry” in first 100 days in office
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Next President “Decider”
Critical Energy Issues for Next US President
• Renewable Fuel Standard
•Growing realization in Washington can’t get to 36 billion gallons by 2022
•EPA has limited authority to rejigger target
•Push for obligation from refiner to blender
• Fuel Economy Standards
•Obama’s signature 2011 agreement with autos for 54.5 mpg by 2025 up for midterm review by April 2018
•Low pump prices spurring purchase of fuel-thirsty pick-ups and SUVs
•Jockeying by car companies, regulators, and environmental groups
•High octane fuels opportunity for methanol
• Paris Climate Change Agreement
•According to Climate Analytics, 57 countries have now indicated they will ratify or have already ratified the agreement by year’s end. They account for 59.88% of global emissions.
•Paris agreement shaped to allow US to legally join by Presidential Executive Order without US Senate vote
•No real compliance teeth to agreement
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BONUS: Methanol as Diesel Substitute
Diesel Emiss ions Under At tack
• The “low hanging fruit” for methanol fuel blending may be the diesel substitution market for heavy-duty trucks and buses
• Methanol Institute looking at research agenda for dual-fuel compression ignition engines and dedicated spark ignition engines
• MI Member Fuel Injection Technologies of China working with Beiben Trucks and Yuchai engines in China
• MI sponsoring work in Finland to convert Scania ED95 engine to MD95
• MI sponsoring Green Pilot Boat to demonstrate methanol fueled engines from FiTech, Volvo, and Scania
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CONTACTS 07
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CONTACTS
01
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03
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• G R E G D O L AN
CEO
• C H R I S C H AT T E R T O N
COO
• D O M L AV I G N E
Director of Government
Affairs
• L AR RY N AV I N
Senior Manager External
Affairs
05
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• E E L C O D E K K E R
Chief EU Representative
• K AI Z H AO
Chief China Representative
• AP R I L C H AN
Executive Manager
• S H E E VA N O S H I R VAN
Executive Assistant
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